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An Increase in Autonomous Consumer Expenditure Causes the Aggregate Demand

question 18

Multiple Choice

An increase in autonomous consumer expenditure causes the aggregate demand function to shift ________, the equilibrium level of aggregate output to rise, and the IS curve to shift to the ________, everything else held constant.


Definitions:

Video Game Console

A specialized electronic device designed to play video games that connect to a television or other display media.

Price Leader

A company that determines the price levels in the market due to its dominant position or competitive strategies.

Competitors' Prices

The cost at which rival businesses offer similar goods or services in the market.

Potential Competitors

Potential competitors are businesses or entities not currently in a market but have the capability and interest to enter the market and compete for the same customer base.

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